Taylor Report

Inflation may (may) ease a little because of a recession........or, the fed eases off on raising rates to offset a recession which makes rates rise. Neither is good for gold or equities.

THINK! EVEN IF THE FED CAN REDUCE INFLATION TO HALF OF WHERE IT IS NOW (9% to 4.5%) INTEREST RATES WOULD STILL NEED TO BE WELL ABOVE 5%-6% TO MAKE INFLATION GO AWAY.

While everyone is watching and waiting for some magical insight to guide them in regards to the INSANE EQUITY MARKETS, have you noticed commodity prices? Inflation harbinger of future price increases...

What's new? Not much ..... Delta variant of Covid grabbing lots of headlines ..... to shot or not to shot? ..... mask or no mask? ..... that's got center stage .....interest rates sink to over six month lows (go figure).

What's new? Other than Afghanistan.....not much.....August is traditionally slow and the last two weeks before the end of summer is even slower.....BITCOIN seems "comfy" around $46K.

What's new? CHINA......first its Elon Musk and then here comes China.........China stomps its big foot and basically shuts down BITCOIN mining in China causing BITCOIN to plunge (down 25% week on week).........Panic hits the crypto market, BITCOIN trades under $30K.........ETH drops under $2,000 (off 30%+ week on week)

What's new? Crazy week.....flare up of Delta version of Covid.....inflation heats up.....Fed says "yeah, so?.....and bonds rally, yields fall? WTF.....stocks dive, BTC & ETH dip lower (again) and GOLD perks up (a little).

Listening to 'experts,' and telling yourself inflation has peaked, is like believing in the tooth fairy. Unexpected shocks (and there are many) have yet to hit. Just because they haven't happened doesn't mean they won't.

JUST BECAUSE THE NEW YEAR BEGINS NEXT WEEK DOESN'T MEAN EVERYTHING GETS ALL ROCKING AND ROLLING. FIRST WEEK IS A TIME TO OBSERVE.

Simple Thoughts in Complex Markets By Bill Taylor, Contributor/CIO-Entoro Wealth The...